Low-cost airlines in the United States are struggling. Spirit Airlines is attempting a Chapter 11 reorganization, Southwest Airlines succumbed to investor pressure to change its business model, and now the chief executive of Frontier Airlines has been ousted with almost immediate effect.
On Monday, the Denver-based ultra-low-cost carrier made the surprise announcement that longtime CEO Barry Biffle was being replaced at the top by the airline’s president, James Dempsey.
Dempsey took on the reins as CEO on December 15, while Biffle will remain at Frontier in an advisory capacity until the end of the month. The reason for his sudden and unexpected replacement remains a mystery.
In an SEC filing, however, Frontier Airlines said Biffle’s departure wasn’t down to”any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Make of that what you will.
Biffle has worked at Frontier since 2014, and before then, he honed his skills at struggling rival Spirit Airlines. During his tenure, Biffle led several failed bids to acquire Spirit.
Despite increasing pressures on low-cost airlines, Biffle recently declared that reports of the demise of the business model in the United States had been greatly exaggerated.
Many of the issues facing Frontier and its rivals, like Spirit, Biffle claimed, were down to overcapacity, and an adjustment was necessary to ensure the long-term success of budget carriers.
